The New Economic Policy

-By 1921 Lenin realized war Communism was not causing a recovery-He brought in the NEP (new economic policy)-Some private trade was permitted-Peasants could sell surplus-Small factories could be purchased by a co-operative for private ownership-some parts of the industry began to recover under the NEP-This policy was later removed after the economy recovered

Summary: Because of the low economy from War Communism, Lenin put the New Economic Policy into place which increased the economy by permitting private trade.